The blog of the 'There is a Better Way' campaign by STUC staff about policy issues that are, or should be, in the news and guest contributors on issues of social justice. Written from a STUC perspective, contributions will often cover areas where there is yet no settled STUC policy and go into areas in more detail than our formal decisions. We welcome debate and we don’t expect everyone to agree with us, but we will remove any comments that are offensive, irrelevant or otherwise annoy.

Thursday, 26 November 2015

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from Nicola Sturgeon MSP, the First Minster of Scotland on the importance of this March.

In September, just before a humanitarian summit on Scotland’s response to the refugee crisis I had the opportunity to sit down for a cup of tea with people who have made their home in Scotland after fleeing persecution and war in their own country.

As we talked, it became apparent that they had been made to feel extremely welcome in Scotland and all of them were keen to contribute positively to society. Later, some gave powerful testimonies in the summit itself, describing how they had brought their families here to make a new home.

Listening to their stories, it was clear that the decision taken by these people to leave their own countries had not been an easy one. Anyone who risks taking their family on what can be a treacherous journey does not do so without having exhausted all available options at home.

That is why we must recognise that the desperate situation in which people arriving on Europe’s southern shores find themselves is a humanitarian crisis. These people come to Europe and the United Kingdom, not to “scrounge from our welfare state” or “steal our jobs” but because they have no choice if they want to keep their families safe.

In responding to this humanitarian crisis, I have made it clear that we stand ready to accept our fair share of refugees. Indeed, we expect to take around a third of the total number coming to the UK before Christmas.

That has meant an immense amount of work by local authorities and other partners such as the Scottish Refugee Council and the STUC, to ensure that those arriving in Scotland are able to integrate successfully into society.

But it has also demonstrated the wider desire, across Scottish society, to pitch in with practical help to some incredibly vulnerable people. We have been inundated with offers of support from members of the public, businesses and organisations from all parts of Scotland.

All of this has meant that, as the first people seeking refuge from the war in their own country have begun to arrive in Scotland, they have been assured of a very warm welcome.

Wednesday, 25 November 2015

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from Kezia Dugdale MSP, Leader of the Scottish Labour Party on the importance of this March.

Scotland has a proud record of being a multicultural and welcoming country. The last few months, as the refugee crisis has escalated, we have seen this welcoming and empathetic culture at its very best.

A few weeks ago I joined a rally outside the Scottish Parliament, saying loudly and proudly that refugees are welcome here. Outside the Parliament were lined candles, messages of support and messages to David Cameron, condemning his poor response to some of the most vulnerable people in the world. I was proud to light a candle and immensely proud of the public response; young and old, of different cultures and different backgrounds, people coming together with one powerful voice. It is this collectivism and this inclusiveness that will always defeat bigotry and racism.

Scotland's response has been phenomenal. We have had families open the doors to refugees, volunteers collecting hundreds of bags and boxes of donations and fundraising pouring in. A particularly heartwarming response has come from our local authorities. Glasgow was the first UK city to accept Syrian refugees, In Edinburgh we've committed to support 100 refugees, in the Highlands 30 more, and these are just a few examples, there are countless more examples of solidarity.

Whether it was when Glasgow awarded the key to the city to Nelson Mandela or when crowds of public have lined the streets peacefully against the BNP or SDL, we have said no to racism before and I hope people across Scotland will continue to do so. We can never be complacent about bigotry, we can never assume that because we are tolerant others will be too. It is an activism that must be conveyed in or daily actions, we must all take it on ourselves to call out racism when we see it or hear it.

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest

Blog from Patrick Harvie MSP, Co-convener of the Scottish Green Party on the importance of this March.

Europe is facing the most severe refugee crisis for generations, and as winter sets in the human toll is already unbearably heavy. Yet in the UK and many other countries, the voices of racism and xenophobia are heard, including in government, denying the human dignity of those seeking refuge and seeking to close the door on them.

All too often people are encouraged to view refugees as a burden, rather than as fellow human beings. In reality, it is those who are forced to leave their homes, often undertaking perilous journeys, who bear a burden. Wealthy countries such as ours are in a privileged position in being able to help, and it is vital that we resist and oppose the hostility, selfishness and racism which is intended to undermine the empathy and compassion which should guide our actions.

I believe that most of Scottish society, and the majority of Scotland’s political landscape, does reject those racist attitudes. But we can never relent in making that clear and in challenging racism where it continues to exist, whether in a position of power or anywhere in our society. So the Scottish Green Party is proud to support the STUC’s St Andrew’s Day march and rally, and we will work with you to ensure that Scotland is united in offering refugees the welcome and the security which they need and deserve.

Tuesday, 24 November 2015

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from Ruth Davidson MSP, Leader of the Scottish Conservative Party on the importance of this March.

Nobody could fail to be moved by the humanitarian crisis which continues to unfold.

The testimony of the men, woman and children who risk everything they have to escape an intolerable situation, is hugely affecting.

The UK is a moral nation and we fulfil our moral responsibilities.

I am proud that we are the first G7 nation to meet its commitment to spend 0.7 per cent of our economy on aid. I am pleased, too, that the UK is allocating £1 billion in aid and development programmes to help with the Syrian refugee crisis – more than any country bar America. The Prime Minister has also appointed a new Minister for Refugees

It is right too, that our country has offered sanctuary to 20,000 refugees, resettled directly from camps in Turkey, Jordan and Lebanon.

Importantly, this approach balances the need to give shelter, with the need to discourage vulnerable families from making the dangerous journeys across the Mediterranean.

But simply accepting refugees is not enough.

We have to support our local communities, too. That is why we will use the foreign aid budget to help councils provide critical services, such as housing.

The challenge now is to build on our commitments. Those coming here fleeing the worst of circumstances need to feel welcomed.

We must all continue to do our bit to ensure that Scotland’s cultural and racial diversity is seen as one of our nation’s great assets, rather than as a threat. For this diversity is something which makes our country, and, especially, our cities, such incredible places to live and work.

We all have our own part to play in championing this message.

That’s why it is so important that this STUC No Racism rally - and others like it- continue to take place to ensure we can promote a future without racism.

The STUC has long shown an admirable commitment to this fight and I stand proudly with them.

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from Willie Rennie MSP, Leader of the Scottish Liberal Democrats on the importance of this March.

In recent years we have made substantial progress towards tackling prejudice and our country is a better place as a result.

But attitudes towards those seeking sanctuary in our country have been slower to change.

Too many people still view refugees as an unnecessary burden. With the Prime Minister and tabloid headlines warning of “swarms” of migrants coming to our shores, it is easy to see how these views can persist.

The refugee crisis is the biggest humanitarian challenge that Europe has faced since 1945. Our response to the crisis needs to match the scale of this challenge.

And just as we speak out against racism, we need to ensure that we are challenging those who would see us ignore our obligation to help.

We must not allow those who would use this tragedy as an excuse to pull up the drawbridge to win the argument.

We must not let prejudice and small-mindedness prevent us from helping people who need our support desperately.

The failure of the UK government to accept more than a fraction of the refugees we should be helping is enormously disappointing.

Britain has always been a country that welcomed refugees, from those fleeing religious persecution in the 17th century, to the children saved through the kindertransport ahead of World War II. Now is not the time to abandon these historic values.

We can do more to help. We must do more to help.

It is down to all of us who would see us react to the refugee crisis with tolerance, openness and compassion to speak with one voice and send a strong, clear message.

Monday, 23 November 2015

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from NUS Scotland on the importance of this March.

NUS Scotland are proud to be supporting the St Andrews’ Day March, a demonstration of the strength of our united movements against racism and fascism. Migrants to Scotland contribute huge amounts to our society and it’s important that we celebrate this valuable contribution at every opportunity. St Andrew’s day particularly, gives us an important opportunity to show the strength of positive feeling that exists across our community to the importance of standing up for those potentially fleeing persecution, and seeking a better life, in Scotland.

With the refugee crisis growing, and the disgraceful anti-immigration rhetoric we’re seeing from sections of the media and politicians across the UK, it’s rarely been more important to unite in opposing racism everywhere it rears its ugly head. Far too often we see negative stories about people risking everything to try and escape the destruction of their home countries, but we’ve also seen this met with positive actions to help those caught up in the crisis, a crisis caused by circumstances beyond their control.

The student and trade union movement has a strong history of supporting internationalism, and fighting racism and fascism. Even in the last few weeks, students and students’ associations across Scotland have mobilised in response to the refugee crisis we’ve seen, setting up “drop off” points, where students donated vital items to refugees in Calais. We’ve also seen campaigns up and down the country calling for better support for our refugee and asylum seeking students, leading to scholarships being introduced at the University of Edinburgh and Strathclyde.

Our own Black Students’ Campaign has been instrumental in the campaign against the forced deportation of one of our students, Majid Ali, who was taken to Pakistan despite concerns for his safety in the country. While this is a distressing example of this government’s disgraceful attitudes to some of our brightest students, Majid’s is by no means a unique case, and it is a campaign we fight day in, day out.

As the St Andrews Day March demonstrates, Scotland has a huge number of fantastic organisations and individuals campaigning against racism and fascism. However, it’s frankly a disgrace that the responsibility to support for asylum seekers and refugees, some of the most vulnerable members of our society, has been left solely to our grassroots activists while the government turns its back on them.

We look forward to working in solidarity with partners across Scotland to change this, and fight the government’s appalling attitude towards asylum seekers and refugees.

Friday, 20 November 2015

The St Andrew's Day Anti-Racism March and Rally this year has the theme 'No Racism: Refugees Welcome Here.' The rally will take place on Sat 28th Nov, Assemble 10:30am Glasgow Green. Below is a Guest Blog from Ephraim Borowski, Scottish Council of Jewish Communities on the importance of this March.

When you see the pictures of the tens of thousands of refugees fleeing into exile each day from the civil war in Syria, does it engage your compassion, or your sympathy, or your ideology? Do you truly empathise with their plight? Do you feel what they feel? Do you know what it is really like to be expelled from your home, to have to flee for your life and to risk your life to save your life, to have no-one to take you in?

Sadly, that’s a story Jewish people are very familiar with – Jewish history has more than its fair share of exiles, from the biblical narrative of the famine that forced Jacob and his family to leave their homes near Beersheba south of Jerusalem to buy food in Egypt where like so many of today’s refugees, they were subsequently forced into slavery, through expulsions by the Babylonians, Romans, the Crusades, the Inquisition in Spain, pogroms in Eastern Europe, the Holocaust, and, most recently, from Iraq, Yemen, Syria, and North Africa.

Like many of today’s exiles, the Jewish people have always dreamed of returning home. The Exodus from Egypt is not merely an incident in history, but is mentioned daily in prayers, and commemorated in the three “pilgrim festivals” that recall each stage of the journey: the Exodus itself, on Passover, when the tribe of Israel became the Jewish nation; the revelation on Mount Sinai that we celebrate on Shavuot, and the 40 years of wandering in the wilderness, recalled by the ramshackle shelters that we build and live in for the week of Succot. Although the biblical Exodus was for us a return, a positive experience, as history has shown it was, ultimately, only a temporary relief.

So we identify and empathise with today’s refugees because exile and homesickness are so ingrained in our identity and our faith and our history. We remember the precariousness of being a refugee, taking that risk because the uncertainty of surviving the exodus was preferable to the certainty of extinction if they stayed behind. For me that was echoed in one of the many tragic stories from the current crisis, of the Syrian surgeon whose wife and daughter had drowned, but who still said that it had been rational to take that risk.

The Jewish people went as migrants to Egypt; we escaped as refugees from Egypt; we were exiled again by the Romans. We travelled across Europe – and back again. My mother’s family came to Glasgow to escape pogroms in Russia, my father to escape the Holocaust. And we are not the only ones – nearly every family in Scotland has a story of migration, from the Vikings, the Saxons, and the Normans to the Irish, the Asians, and the Eastern Europeans. Who are we to close the door behind us? It’s not “There, but for the grace of God, go I”, but “Here, by the grace of God, came I”.

Wednesday, 18 November 2015

Deputy First Minister should refuse to
sign up to Fiscal Framework unless the right block grant adjustment can be
agreed.

STUC
General Secretary Grahame Smith today warned that key new powers enshrined in
the Scotland Act could become a poisoned chalice if the Fiscal Framework
currently being negotiated between the Scottish and UK Governments fails to
meet the ‘no detriment’ principle as agreed by the Smith Commission.

The
STUC has been an advocate for strong additional powers for the Scottish
Parliament, particularly in the area of taxation.

“However,
we have always been absolutely clear that the value of the new powers,
particularly those relating to new welfare spending and tax raising, were
dependent on an appropriate Fiscal Framework.We recognise that negotiations between the two governments are sensitive
and ongoing, but there has been far too little public debate on this issue.

Over
the next couple of weeks we will be assessing three key elements of the Fiscal
Framework all of which will impact on the calculation of the Scottish Block
Grant in years to come:

How, will the Scottish block grant be adjusted to take
account of additional spending flowing from the devolution of new powers -
primarily welfare?

What mechanisms will be put in place to allow the
block grant to be adjusted to reflect specific UK and Scottish Parliament
spending decisions where they have a direct impact on the finances of the other
body.

Following the initial adjustment of the block grant to
compensate for the devolution of taxes to the Scottish Parliament, what method
of will be used for block grant adjustment in future years.How will this impact in Scotland?

Today
we make comment on the impact of the devolution of new taxes, primarily income
tax and raise serious concerns that if the method applied for year on year
adjustments to the block grant is not right, very severe detriment could
result.This would call into severe
question whether the Scottish Parliament should accept the new tax powers.

“We
have reviewed some of the relevant literature on this subject and conclude that
Scotland could find itself disadvantaged to the tune hundreds of millions in a
relatively short space of time if the wrong method is applied and that this
figure could reach the billions over a longer time period.

“In
this context, it would be completely wrong for the Deputy First Minister to
sign up to a mechanism for block grant adjustment which would structurally
disadvantage Scotland. It would also be entirely wrong for the Scottish
Government’s political opponents to characterise an appropriately firm bargaining
position as the Government ‘dragging of feet’ on new powers. The Fiscal
Framework is absolutely central to the impact of further devolution and it
would be entirely wrong to sleepwalk into a bad deal.”

Fiscal
Framework

The STUC has argued, in a view taken during the
referendum and prior to the ‘Vow’, Smith Commission and subsequent Scotland
Act, that the Fiscal Framework surrounding the new powers over tax and spending
had the potential to ‘make or break’ the new devolution settlement.

This concern is amplified by the nature of the powers
finally agreed for transfer; the transfer of income tax powers isn’t balanced
by a sufficiently wide basket of other tax powers.

Key factors include the fact that Scotland’s share of
the UK total income tax revenue is below its population share due to the
concentration of high income tax earners in London and the South East of
England; and that the Scottish population is predicted to grow more slowly than
that of the rUK.

The ‘no detriment’ principle is very difficult to
apply and remains the subject of varying interpretations.

The three key questions are.

How will the Scottish
block grant be adjusted to take account of additional spending flowing from the
devolution of new powers - primarily welfare?

What mechanisms will be put in place to allow the
block grant to be adjusted to reflect specific UK and Scottish Parliament spending
decisions where they have a direct impact on the finances of the other body.

Following the initial adjustment of the block grant to
compensate for the devolution of taxes to the Scottish Parliament, what method
of will be used for block grant adjustment in future years.How will this impact in Scotland?

This paper deals with the third of these questions and
concludes that, if the wrong adjustment method is adopted, severe reductions in
Scottish Parliament revenues can be predicted which would infringe the ‘no
detriment’ principle and call into question whether the devolution of income
tax as laid out in the Scotland should be accepted by the Scottish Parliament.

The year one calculation is reasonably simple.The Block grant will be increased by the quantum
of spending currently attached on the UK responsibilities to be devolved and
then decreased by the amount of revenue the Scottish Parliament would have
raised if it already had the new tax powers – primarily income tax.

The calculation for following years is far more
complicated and outcomes are very sensitive to the methods applied.

No detriment and the devolution of
powers

The STUC recognises that the
Smith Commission’s recommendations on ‘no detriment’ are subject to variable
interpretation and can be applied in different ways.In the STUC’s view, the application of ‘no
detriment’, as it relates to the calculation of the future block grant, are:

The initial adjustment to the block grant to reflect
changes in tax and spending powers should be revenue neutral. For the tax
revenue component of this, the initial calculation should be a deduction from
the Scottish block grant of the sum that will be derived from the newly
devolved Scottish taxes.

The adjustment in subsequent years should allow for
different impacts where Scottish Parliament tax and spending policies differ
from that of the UK Parliament.This
implies that if Scottish tax revenue should rise or fall consequent to policy
decisions to alter rates or thresholds; or if there are differing levels of
economic growth, the benefit/detriment should be retained by the Scottish
Parliament.

The adjustment in subsequent years should employ a
method which guarantees (as closely as is possible) that had there been no
changes in policy or variation in relative growth, the block grant deduction would
retain maintain parity with the tax raised in Scotland through newly devolved
taxes.In short, if there is no
difference in economic performance or tax rates between Scotland and the rest
of the UK, public spending in Scotland should be no higher or lower than under
the current funding framework.

Thus, the principle of ‘no
detriment’ as it applies to the adjustment of the block grant to reflect the
devolution of tax revenue streams is maintained initially and in future years
without impacting on the principle that the effect of differing fiscal policy
decisions should impact on the Parliament which takes such decisions.

Indexing options

Clearly, the revenue derived
from taxation will differ year on year.Over a period, revenues can be expected to increase as a consequence of overall
growth.Thus, in most years, the quantum
of both UK and Scottish income tax should increase, leading to an increase in
revenue for the Scottish Parliament from income tax and a larger deduction in
the block grant reflecting overall growth in tax receipts.

The initial adjustment figure
is a lump sum, which requires no formula save an agreed figure for what
constitutes the Scottish share of income tax receipts (principle a).

Subsequent adjustments cannot
be made using the same method otherwise the calculation would fail to recognise
potential policy variations (principle b) and therefore a formula is required
by which changes in UK tax receipts and Scottish tax receipts can be reconciled
with the appropriate deduction to the block grant.

The STUC has reviewed the
currently available literature on methods of adjustment[1] There
is more than one way in which this future adjustment can be calculated. Remembering
that the overall figure might vary as a consequence of different growth rates
or tax policy, it is still possible to predict how the various methods for the
adjustment would impact on the revenues of the two parliaments assuming no
divergence in policy or growth (principle c).

All of the options for
indexation retain the same Year 1 adjustment figure as is consistent with
principle a), but take a different approach to how the increase in the block
grant deduction is calculated.

This option would calculate
the additional amount by which the block grant is to be reduced by each year
based on Scotland’s population share of the change in comparable tax receipts
in the rest of the UK (rUK).

This method would create a
disparity between the block grant deduction and the increase in Scottish
Parliament income tax receipts. This is because Scottish income tax receipts
are lower per capita than across the UK as a whole (largely driven by the
concentration of higher rate tax-payers in London and the South East).Scotland accounts for 8.3% of the UK
population but 7.3% of UK income tax receipts, the annual block grant deduction
will therefore be greater than the growth in Scottish income tax receipts – even when income tax receipts are growing at
the same rate in Scotland and the rest of the UK.This indexation method therefore guarantees
that even when Scotland matches the economic
performance of the rest of the UK its budget will be smaller than that provided
under the current funding framework.

This breaches the no
detriment principle outlined earlier that the effect of the devolution of
income tax should be revenue neutral, assuming comparable growth rates and
non-divergent tax policy.

The effect of using this
method would be that, over a period, Scotland’s public spending relative to the
rUK would be significantly damaged.

Option 2 – indexation against relevant UK tax receipts
in the rUK

Option 2 would index the annual
block grant deduction to the overall increase in comparable tax revenue in the rUK.However, as rUK population growth is expected
to exceed Scotland’s, the annual block grant deduction will, over time, exceed
the growth in Scottish income tax receipts – even if per person receipts in
Scotland and the rest of the UK grow at the same rate.

Scotland does not have key
devolved powers such as migration policy, which might enable it to proactively
increase its population relative to rUK. This method of indexation therefore also
conflicts with principle c), that all other factors being equal, Scotland’s
relative fiscal position should not deteriorate.

Option 3 – indexation against relevant UK tax receipts
in the rUK adjusted for population growth

The best, and in the STUC’s view,
fairest approach, is to index the initial baseline adjustment to the growth in
relevant rUK tax receipts (Option 2) but to make a subsequent adjustment taking into account the change in
relative population growth between rUK and Scotland.In the case of income tax, this would mean
indexing the initial block grant adjustment to the growth in per person income
tax receipts in the rest of the UK.

This
method gets closest to compensating for the disparity in tax base between
Scotland and rUK which is [largely?] a consequence of UK macro-economic and
fiscal policy; and the predicted slower rise in Scotland’s population relative
to the rUK, a trend the Scottish Parliament does not have the powers to
substantially influence.It means that
if income tax receipts per person grow at the same rate in Scotland and rUK,
and tax rates are the same in both countries, public spending in Scotland will
be exactly the same as it is under the current funding framework.This therefore achieves the Smith Commission’s
no detriment principle

Year 2 BGA = Year 1 BGA + (Scotland’s population
share[4]
of change in rUK receipts))

Year 2 BGA = £11 billion+ (9.1%* (£167bn - £145bn))

Indexed Deduction per capita Worked Example

Year
1

Year
2

Rest of UK Income Tax Receipts

£145
billion

£167
billion (15% growth)

Scotland – Income Tax Receipts

£11
billion

£12.7
billion (15% growth)

Block Grant Adjustment (BGA)

£11
billion

£12.7
billion

Impact on Scottish budget

(Scottish Income Tax – BGA)

£0

£0

Calculation for the BGA in year 2 is as follows

Year 2 BGA = Year 1 BGA * Growth in rUK Income Tax Receipts per capita,
multiplied by Scottish population growth

Year 2 BGA = £11 billion* (1.15/1.06) * 1.06

Notes

For simplicity, the calculations assume that the
population grows at the same rate in Scotland and the rest of the UK (0.6%).
In this case, tax receipts per head would also grow at the same rate in
Scotland and the rest of the UK and indexed deduction and indexed deduction
per capita yield the same result.

The above examples illustrate the differences between
the level deduction andindexed
deduction methods under the assumption that population growth is similar in
Scotland and the rest of the UK.However, latest population projections indicate that Scotland’s
population is expected to grow less quickly than in the rest of the UK. In this
case, if tax receipts per capita
grew at the same rate in Scotland and the rest of the UK, Indexed Per Capita Deduction would ensure that Scotland’s budget is
no better or worse off following the devolution of income tax whilst Indexed
Deduction would not. This is because even if per person receipts in Scotland
grow in line with the rest of the UK, aggregate receipts may not due to slower
population growth.

About Me

The STUC is Scotland's Trade Union centre.
Our purpose is to co-ordinate, develop and articulate the views and policies of the trade union movement in Scotland and, through the creation of real social partnership, to promote: trade unionism; equality and social justice; the creation and maintenance of high quality jobs; and the public sector delivery of services.
The STUC represents over 596,000 trade unionists, the members of 37 affiliated trade unions and 22 Trades Union Councils. We speak for trade union members in and out of work, in the community and in the workplace, in all occupational sectors and across Scotland. Our representative structures ensure that we can speak with authority for the interests of women workers, black workers, young workers and other groups of trade unionists that otherwise suffer discrimination in the workplace and in society.